Eventually, Schwinn was not able to pay the Asian
manufacturers for these unsold bicycles. The bankers perceived the trouble at
the Greenville factory and the misadventure in Hungary as a hit to their
confidence schwinn tricycle that Schwinn could manage its financial woes. This combined with
lower Schwinn bike sales set in motion a series of actions that put the company
under financial stress starting in the 1990s.
A young Edward
Schwinn, Jr. had created a youth movement among Schwinn management bringing in financial
specialists that had sometimes limited experience in manufacturing. Looking back, Schwinn had suffered from a thousand cuts during
the 1980s. This
included the closing of a longtime factory in Chicago, starting a new factory
in Greenville, Mississippi, buying a 40 percent share of a plant in Hungary,
and purchasing a one-third interest in a factory in Hong Kong. Spurred by the
era of globalization, by the end of the decade Schwinn outsourced most of its manufacturing
to Asia.
G. Spalding and Alexander Pope, both
major bicycling manufacturers, realized that adults were quickly moving away
from riding bicycles. With the slide in adult sales, Spalding and Pope joined
hands with some others from the bicycle business to form the American Bicycle
Company, a consolidated trust of manufacturers. In the spirit of industrial capitalism
at the turn of the century, the goal was to monopolize the market and to put small
independent bicycle companies out of business.
To accomplish this, in the mid-1980s Schwinn
purchased a one-third share of a China Bicycles factory in Hong Kong (Crown and
Coleman 1996). The goal was to reduce its reliance on it main Asian
manufacturer Giant. With the Hungary and Hong Kong ventures and with the
Greenville plant, Schwinn planned to be secure a bicycle supply base that was
not overly dependent on one manufacturer. Family businesses rarely last longer than the three
generations, so the surprise is that the Schwinn family-owned bicycle company
lasted so long. Jonathan Ward (1987) in
his work on family business succession indicated that 30 percent of businesses
last through the second generation.
This range has more of a focus on speed than the cruiser or bike path range, with flat handlebars and a more fitness-orientated riding position. This feature, attractive to older riders, soon found its way to other Schwinn models, especially those schwinn mountain bike intended for senior citizens. It is a space that embraces inclusivity, making room for everyone in a community that melds fun and sweat. Our philosophy has always been to create leading products, programs, and experiences, no matter the vision.